Research
Interview Synopsis

Tuya – overseas business project operations & development momentum

  • Public Equity
  • TMT
  • Greater China

The growth of the Internet of Things (IoT) industry and smart products has been a boon for companies like China-headquartered Tuya, which has enjoyed a “strong first-mover advantage” in the overseas market, particularly the EU and US. And “its future prospects look very promising”, a former project director at Tuya Inc (Hangzhou Tuya Information Technology Co Ltd) told Third Bridge Forum.

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Overseas a “big growth point” for Tuya

Starting with the history of Tuya, the expert explained how it has “changed its technology route from product-based to scenario-based”. Since 2018, the company has been expanding its international footprint and this year became the world’s first IoT company to go public. Tuya also now serves professional clients, such as Schneider Electric, which offer business products. 

What separates Tuya from its competitors — including Huawei, Alibaba, Baidu and JD.com — are its software and app R&D capabilities, we heard. “Now I think Tuya’s core competencies include an extensive product network, rich supply-chain resources as well as proper overseas development strategies.” 

The specialist was also asked to compare Xiaomi and Tuya, and noted “distinct differences”. “There is direct competition between Xiaomi and Tuya’s brand clients, but not between Xiaomi and Tuya.” Meanwhile, Huawei “may compete in China, but there will hardly be any competition between them overseas.” However, the expert explained why Huawei could become a threat in the future. 

After commenting on Tuya’s performance in 2020 and Q1 2021, the specialist discussed the company’s main growth drivers and challenges over the next 1-3 years. Regarding the latter, upstream (such as Amazon and Alibaba) and downstream industries were mentioned as its biggest threats. 

“Such cloud service providers have begun to enter the IoT field. With massive online traffic, they may grab clients from Tuya,” the specialist said. “In the downstream industry, Tuya’s clients may consider developing their own solutions.” 

To access all the human insights in Third Bridge Forum’s Tuya – overseas business project operations & development momentum Interview, click here to view the full transcript. 

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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